Description

NSE updates the list of securities under Long-Term ASM Framework with KIOCL Limited added to Stage-I and Sumeet Industries Limited moved to Stage-IV (Trade for Trade basis).

Summary

NSE has issued updates to the Long-Term Additional Surveillance Measure (ASM) Framework effective October 08, 2025. KIOCL Limited has been newly added to Stage-I, while Sumeet Industries Limited has been moved from Stage-I directly to Stage-IV. Securities in Stage-IV are shifted from Rolling Settlement (Series: EQ) to Trade for Trade (Series: BE) on a T+3 basis. No securities are being excluded from the ASM Framework in this update.

Key Points

  • KIOCL Limited (INE880L01014) added to Long-Term ASM Framework Stage-I
  • Sumeet Industries Limited (INE235C01036) moved from Stage-I to Stage-IV
  • Stage-IV securities operate on Trade for Trade (Series: BE) basis with T+3 settlement
  • No securities moved between Stage-I to Stage-II, Stage-II to Stage-III, or other intermediate transitions
  • No securities excluded from ASM Framework
  • Consolidated ASM list includes multiple securities across various stages including AARON, ABINFRA, AKSHARCHEM, APOLLO, ASTRON, AXISCADES, BALCO, and BANKA

Regulatory Changes

The circular implements NSE’s Long-Term ASM Framework which uses staged surveillance measures. Securities can progress through four stages based on criteria outlined in the framework. Stage-IV represents the highest level of surveillance where securities are moved from normal rolling settlement to Trade for Trade basis, requiring full upfront payment and delivery, effectively reducing speculative activity.

Compliance Requirements

  • Trading members must ensure compliance with Trade for Trade settlement requirements for SUMEETINDS from October 08, 2025
  • Market participants must provide full upfront margins for Stage-IV securities
  • No short selling permitted in Trade for Trade segment
  • Settlement occurs on T+3 basis for Stage-IV securities (3 days from trade date)

Important Dates

  • Effective Date: October 08, 2025 - All ASM changes become applicable
  • T+3 Implementation: October 08, 2025 - Trade for Trade basis begins for SUMEETINDS moved to Stage-IV

Impact Assessment

High Impact: Movement to Stage-IV significantly affects SUMEETINDS shareholders and traders. The shift to Trade for Trade basis eliminates intraday trading, requires full upfront payment, and may reduce liquidity substantially. For KIOCL, Stage-I placement increases surveillance but maintains normal rolling settlement. Investors in ASM securities face enhanced price volatility monitoring, stricter position limits, and increased margin requirements. The measures aim to curb excessive speculation and protect investor interests in securities exhibiting unusual price movements or other risk parameters.

Impact Justification

ASM placement significantly impacts trading mechanics, liquidity, and investor participation. Movement to Stage-IV shifts securities to Trade for Trade basis with T+3 settlement, materially affecting trading behavior.